The head of Sonic Labs, Mitchell Demeter, announced that the company will shift its focus from “hype” to fundamental metrics, alter its tokenomics to create a deflationary mechanism, and enhance its business development in the United States.
— Mitchell Demeter (@MitchellDemeter) November 11, 2025
The new strategy for the project was revealed on August 31.
A New Direction
Demeter took on the role of CEO six weeks ago. According to him, he spent the first month analyzing the company’s operations. The team is now moving forward with the plan.
The project leader emphasized that Sonic Labs has a “healthy treasury reserve and no liquidity issues.” However, the CEO acknowledged that communication with the community has slowed recently. He explained this was due to the need to first understand the processes before reporting results.
“Price reflects confidence. It indicates how well we are performing and how much the market trusts us. Validators, developers, token holders, and we at Sonic Labs all care about the value,” Demeter stated.
The head noted that “Sonic Labs is an infrastructure provider, not a venture fund or an app development studio.” The company’s success is directly tied to the growth of network activity and the achievements of developers using its technology.
He stressed that “the race for speed and TPS is over.” The focus will now shift to functionality, developer-friendliness, and compatibility with other networks through the implementation of EIP and proprietary SIP.
Deflationary Tokenomics
The main change will be a revision of the tokenomics. The company will introduce a new fee monetization structure (FeeM) that includes reward levels for developers ranging from 15% to 90%.
10% of network fees will be allocated to validators, while the remaining portion will be burned to create deflationary pressure on the native token S. Details will be put to an on-chain vote.
At the time of writing, S is trading at $0.15, up 3.8% over the past 24 hours.
Business Focus
Sonic Labs will also expand its presence in the United States and plans to open an office in New York. The company is already hiring staff in marketing, sales, and business development departments to attract institutional clients.
Demeter added that he is “actively negotiating with leading global firms” regarding ETF and other initiatives.
Back in March, former company head Andre Cronje announced that instead of a dollar-based algorithmic stablecoin, developers from Sonic Labs intend to launch a “mathematically limited numerical dirham.”